PRESIDENT Rodrigo R. Duterte is now open to limiting Charter change to just economic provisions, noting that Congress is “taking too long” to act on it.
In his speech during the peace assembly for the ratification of the Republic Act No. 11054 or the Bangsamoro Organic Law (BOL) in Cotabato City last Friday, Jan. 18, Mr. Duterte signaled that he might just opt to seek a revision of the Constitution’s economic provisions.
“Much as we would like to change anything there…. We have been used to it. We are the people governed by elections and we elect leaders. The leaders must be the choice of the people. I am sure that with that — the fundamentals provided by the law and hopefully if we can amend the Constitution, not all, but a few of the economic provisions and some…” he said.
In a briefing on Monday, Jan. 21, Presidential Spokesperson Salvador S. Panelo said: “Well, you know the President is a very creative person. If he feels that one method is not practical or cannot be realized, he goes to another mode. What is important to him is that certain provisions in the Constitution must be amended and — that is a judgment call of the Congress.”
Mr. Panelo added that “perhaps… what the President is saying is that it takes too long for Congress to act on it,” noting that Mr. Duterte has been advocating for a revision of the Constitution since the start of his presidency.
“However, Congress hasn’t taken serious moves to make it a realization,” he also said.
Through Executive Order No. 10, Mr. Duterte created the consultative committee (ConCom) in Dec. 2016 that he tasked to review the 1987 Constitution and draft a Federal Constitution. In July last year, he approved ConCom’s draft and endorsed it to Congress.
However, the House of Representatives, under the leadership of Speaker Gloria Macapagal-Arroyo, came up with its own draft, which it approved on third and final reading last December.
Contrary to ConCom’s draft, which the President endorsed to Congress, the House’s version lifted the term limits of elective members of the legislative branch and the ban on political dynasties.
As for the provision on foreign investments, the House’s draft added two words as an amendment to the Article XII, Section 10 (paragraph 4) of the 1987 Constitution: “by law.”
Article XIV, Section 5 of The Resolution of Both Houses No. 15 reads: “The State shall, by law, regulate and exercise authority over foreign investments within its national jurisdiction and in accordance with its national goals and priorities.”
Mr. Panelo said during the briefing that Mr. Duterte has always wanted to liberalize the country’s foreign direct investment policy. “He mentioned during the campaign about the entry of foreign investments; there are so many restrictions. He wants to liberalize that,” he said.
He also said that the lack of support from Congress for ConCom’s draft federal constitution “could be” a reason for Mr. Duterte’s change of mind.
“Could be,” he said, noting that the President was only “expressing an idea.”
“As he tells us he is fond of shaking the trees. So maybe he wants a reaction from those who would want to respond to his idea,” he added.
Ms. Arroyo has said that she is leaving the matter of charter change to the 18th Congress. For his part, Senate President Vicente C. Sotto III has also said that his chamber can no longer tackle constitutional amendments due to time constraints.
Asked if Mr. Duterte was addressing the 18th Congress in his remarks on the matter last Friday, Mr. Panelo told BusinessWorld in a phone message that the President was just “floating an idea.”
Sought for comment, British Chamber of Commerce Philippines (BCCP) chairman Chris Nelson said in a phone interview that he supports the idea.
“We fully support that. Like all the chambers, we have been an advocate of liberalizing foreign investment. We are pleased to hear that.”
“I’m sure that Congress is so busy with many things. But regardless of what is the process, we see that there is a need to increase our foreign direct investments,” he also said.
Mr. Nelson added that he is “optimistic” that this reform will be realized within the President’s term, because he has a “genuine desire” to realize his 10-point socioeconomic agenda.
In a phone message, American Chamber of Commerce of the Philippines, Inc. (AmCham) Senior Advisor John D. Forbes said: “We warmly welcome the president’s statement. There has been a majority consensus for almost 20 years to amend the foreign equity restrictions, which can lead to tens of billions of new investment. Getting the reform done has been the challenge. We believe this administration can do what others have others failed to do.”
Canadian Chamber of Commerce (CanCham) President Julian Payne said his group also welcomes Malacañang’s statement.
“This intent was stated in the initial 10-point economic program issued at the start of his Administration. FDI (foreign direct investment) has increased recently and we are confident that liberalizing the economic provisions will facilitate further significant increases that will stimulate more and sustain FDI. This will bring with it more jobs for Filipinos, more technology transfer, and more revenue for the government.”
He added: “And with a rapidly expanding economy, this will not be a zero-sum game crowding out domestic investment but instead a stimulant for increased domestic investment sharing the growth.”
The President, Mr. Panelo also said, is not yet giving up on federalism. “The President is optimistic because he knows federalism will help the development of this country. It’s a matter of I think time on the part of Congress to do it,” he said. — Arjay L. Balinbin
